The $ 40 billion in funding for higher education in the Senate version of the relief plan includes financial aid for millions of students.
On March 6, the Senate passed its version of an aid plan with $ 39.5 billion for higher education, including financial aid to millions of students in the form of scholarships.
The 50-49 party line vote returns the amended legislation to the House for final approval as lawmakers scramble to meet the March 14 deadline for final passage and signing of the bill.
As passed by the Senate, the US bailout would also benefit students by including larger stimulus checks of $ 1,400, an increase in unemployment assistance of $ 300 per week through September 6, and the first $ 10,200 in tax-exempt unemployment benefits in 2020 for households earning less than $ 150,000 per year.
The $ 39.5 billion will be distributed to public and private institutions. Colleges and universities are required to spend at least half of the money on emergency student grants.
According to CNBC, an important provision to exempt from tax any forgiveness of student loans is included in the bill. Currently, any student loan canceled by the government can be considered taxable at its current tax rate.
For example, if someone earns $ 50,000 a year, is subject to a 22% tax rate, and receives $ 30,000 in student loan forgiveness, they may be billed for $ 6,600 from the student loan. IRS.
Soon, borrowers could be off the hook for these payments. The provision would last until 2025, but it could be extended or become permanent.
Aid to higher education would exceed the $ 14 billion that institutions received under the CARES law last March and the $ 22.7 billion they received in aid of $ 900 billion. December dollars.
The House is expected to pass the measure – which contains the largest higher education aid approved by Congress during the pandemic – as early as Tuesday, sending it to President Biden for his signature.
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